Govt mulls increasing export duty on CPO<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The government warned that it might raise the export duty on
\ncrude palm oil (CPO), the raw material for cooking oil, to ensure
\nstable cooking oil prices during the upcoming festive season.<\/p>\n
Minister of Industry and Trade Rini M.S. Suwandi said an
\nincrease in export duty would help curb the export of the
\ncommodity and thus ensure its availability to local cooking oil
\nproducers.<\/p>\n
This would in turn ensure stable cooking oil prices during the
\nLebaran Islamic holiday and Christmas.<\/p>\n
Rini noted, however, that the government would not raise the
\nduty if local CPO producers agreed to ensure sufficient supplies
\nfor local producers. But, conversely, if the CPO producers could
\nnot guarantee supplies, the government would raise the export
\nduty.<\/p>\n
\"We will soon hold a meeting with CPO producers to discuss
\nthis issue,\" Rini said.<\/p>\n
She did not, however, say how much the increase would be. The
\ngovernment currently imposes a three percent tax on CPO exports,
\nand a one percent tax on refined, bleached and deodorized palm
\nolein exports.<\/p>\n
Coming second after Malaysia among the largest CPO producers
\nin the world, Indonesia has targeted the production of some nine
\nmillion tons this year, up from last year's 8.3 million tons. Of
\nthe total output, some 5.5 million tons are destined for export.<\/p>\n
Cooking oil is deemed a strategic commodity in the country,
\nand the government always seeks to keep its price affordable.
\nDemand for cooking oil normally rises prior to major religious
\nholidays, such as Ramadhan, Christmas, the New Year, and the
\nChinese Lunar New Year.<\/p>\n
CPO producers have been boosting exports over the past several
\nmonths following a significant increase in the international
\nprice of the commodity.<\/p>\n
The price has been hovering at above US$400 per ton over the
\npast several months, while analysts predict the price will
\nfurther rise to $500 per ton next year.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-mulls-increasing-export-duty-on-cpo-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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